June 23, 2016
Merrill Lynch, Pierce, Fenner & Smith Incorporated
SANCTION AMOUNT: $10,000,000
Defendants: Merrill Lynch, Pierce, Fenner & Smith Incorporated
Settlement of allegations that Respondent was responsible for misleading statements in offering materials provided to retail investors for structured notes linked to a proprietary volatility index. Respondent allegedly failed to adequately disclose an additional cost of 1.5 percent of the index value each quarter known as the execution factor.
- Key Docs
- Official SEC press release